So says GPIF head Mitani. Reuters reporting
- will start passive stock investment if direct investment is allowed
Japan's Government Pension Investment Fund is the world's largest of its kind and this potential action is designed to minimise losses after reporting a record JPY 7.9trln loss in Q3
There has been market talk since Nov 30 that some fx hedging was already happening but these comments would help explain some of the session falls in USDJPY as traders anticipate action to be taken on moves toward 125.00 rather than already having taken place
Last year GPIF made a shift in stance by abandoning its strategy to let domestic govt bonds (JGBs) comprise the bulk of its portfolio in the wake of PM Abe's push to promote risk-taking. The JGB target was reduced to 35% from 60%
Currently the govt is debating whether or not to deregulate rules regarding GPIF and allow direct investment in stocks
USDJPY continues its journey lower to session lows of 122.65 with Nikkei down -1.08% at 19281.13 just off its own session lows posted a few moments ago
